A risk casualty company has 84 condo properties that have been damaged by fire,

Question

A risk casualty company has 84 condo properties that have been damaged by fire, flooding, and other causes. Each property had previously been assigned a risk index. The firm wants to find out the relationship between AmtDamage1000in $1000 and property RiskIndex100 in 100's of points. The results are as follows. Regression Analysis: AmtDamage1000 versus Risklndex100 Analysis of Variance Source DF Adi Ss Adi MS F-Value P-Value 1 10881 10881.0 88.69 0.000 Riskindex100 1 10881 10881.0 88.69 0.000 Error Total Model Summary 83 10183 122.7 84 21064 11.0766 51.66% SL0796 4880% Coefficients Term Constant Riskindex100 5.508 0.585 942 000 1.00 _cee( SECod T-Value P·Value VIP 22.84 3.10 7.37 0.000 Regression Equation AmtDamage10002284+5.508 Riskindex100 Interpret b in the above regression TNOEST Risk index affects amount of damages For each additional 10 in Riskindex, amount of damages increase by 5.5 dollars. For each additional Risk Index, amount of damages increase by 5,500 dollars For each additional 100 in Risklndex,, amount of damages increase by 5,500 dollars O O

Explanation / Answer

Here riskindex are in $100 and damages are in $1000.

The slope is 5.508

Correct option,

For each additional 100 in riskindex, amount of damages increase by 5500 dollars.

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